Question
Robinson Company has two products, A and B. Robinsons budget for August follows: Master Budget Product A Product B Sales $ 300,000 $ 450,000 Variable
Robinson Company has two products, A and B. Robinsons budget for August follows:
| Master Budget | ||
|---|---|---|
| Product A | Product B | |
| Sales | $ 300,000 | $ 450,000 |
| Variable cost | 175,000 | 300,000 |
| Contribution margin | $ 125,000 | $ 150,000 |
| Fixed cost | 100,000 | 75,000 |
| Operating income | $ 25,000 | $ 75,000 |
| Selling price | $ 120 | $ 60 |
On September 1, these operating results for August were reported:
| Operating Results | ||
|---|---|---|
| Product A | Product B | |
| Sales | $ 176,400 | $ 546,840 |
| Variable cost | 109,200 | 379,260 |
| Contribution margin | $ 67,200 | $ 167,580 |
| Fixed cost | 100,000 | 75,000 |
| Operating income | $ (32,800) | $ 92,580 |
| Units sold | 1,680 | 8,820 |
Required:
1. For each product, determine the following variances measured in dollars of contribution margin:
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Internal Auditing Assurance And Advisory Services
Authors: Kurt R. Reding, Paul J. Sobel, Urton L. Anderson, Michael J. Head, Sridhar Ramamoorti, Mark Salamasick, Cris Riddle
5th Edition
1634541367, 978-1634541367
